In this piece, we take a look at the five stocks to sell now according to Orkun Kilic’s Berry Street Capital. For more stocks, take a look at 10 Stocks to Sell Now According to Orkun Kilic’s Berry Street Capital.
5. argenx SE (NASDAQ:ARGX)
Berry Street Capital’s Stake Value In Q1 2022: $7.8 million
Percentage of Berry Street Capital’s 13F Portfolio In Q1 2022: 0.89%
Number of Hedge Fund Holders: 35
argenx SE (NASDAQ:ARGX) is a Dutch biotechnology company that focuses on developing treatments for autoimmune diseases. Some of the diseases that its treatments target include neuropathy, myopathy, cancer, and airway inflammation. The firm is headquartered in Breda, the Netherlands.
argenx SE (NASDAQ:ARGX) has been performing well when it comes to its drug that treats muscle weakening. This drug is called Vyvgart, and the company’s latest quarter revealed that it sequentially grew sales by $21 million to stand at $75 million as the second quarter ended. Piper Sandler raised the company’s share price target to $450 from 465 in August 2022, sharing that Vyvgart’s performance was impressive, with neurologists expressing confidence in the drug.
Mr. Kilic’s first quarter of 2022 stake in argenx SE (NASDAQ:ARGX) was worth $7.8 million and it came in the form of 25,000 shares. During the second quarter, this entire stake was sold by Kilic’s fund.
argenx SE (NASDAQ:ARGX)’s largest investor is Kurt Von Emster’s VenBio Select Advisor which owns 1.2 million shares that are worth $479 million.
4. Omnicell, Inc. (NASDAQ:OMCL)
Berry Street Capital’s Stake Value In Q1 2022: $8 million
Percentage of Berry Street Capital’s 13F Portfolio In Q1 2022: 0.91%
Number of Hedge Fund Holders: 19
Omnicell, Inc. (NASDAQ:OMCL) is an American company that provides medication management and adherence tools for pharmacies and other healthcare companies. These allow for pharmacy automation, automated dispensing of medications, and other uses. The company is headquartered in Mountain View, California.
Berry Street Capital held an $8 million stake in Omnicell, Inc. (NASDAQ:OMCL) during Q1 2022, which came in the form of 62,500 shares. At the time, it represented 0.91% of the firm’s investment portfolio, but the firm sold all these shares as the second quarter ended. Insider Monkey’s Q2 2022 research covering 895 hedge funds saw 19 investors in the company.
Omnicell, Inc. (NASDAQ:OMCL)’s shares have dropped by 32% over the past six months – a factor that was undoubtedly on Mr. Kilic’s mind as his fund sold its entire stake in the company. Piper Sandler reduced the firm’s share price target to $150 from $162 in August 2022, stating that its second quarter results were impressive.
Omnicell, Inc. (NASDAQ:OMCL)’s largest investor in our database is Ken Fisher’s Fisher Asset Management which owns 256,333 shares that are worth $29 million.
Carillon Tower Advisers mentioned the company in its Q1 2022 investor letter. Here is what the fund said:
“Omnicell (NASDAQ:OMCL) provides an integrated suite of clinical infrastructure and workflow automation solutions for healthcare facilities. Cloud services have been a focus of the company and have shown good growth, automating many manual processes.”
3. Houghton Mifflin Harcourt Company (NASDAQ:HMHC)
Berry Street Capital’s Stake Value In Q1 2022: $15.7 million
Percentage of Berry Street Capital’s 13F Portfolio In Q1 2022: 1.78%
Number of Hedge Fund Holders: N/A
Houghton Mifflin Harcourt Company (NASDAQ:HMHC) was an American company that provided educational solutions to schools and educators. This included curriculum, supplemental, and other solutions.
Houghton Mifflin Harcourt Company (NASDAQ:HMHC) was acquired by the private equity firm Veritas Capital in August 2022, with the firm’s shares ceasing to trade on the market during mid August as the deal was completed. Prior to its closing, Mr. Kilic’s hedge fund owned 750,000 shares of the company which was a new addition to its portfolio in the first quarter. The shares were worth $15.7 million and they represented 1.78% of the holdings.
2. AT&T Inc. (NYSE:T)
Berry Street Capital’s Stake Value In Q1 2022: $17.7 million
Percentage of Berry Street Capital’s 13F Portfolio In Q1 2022: 2%
Number of Hedge Fund Holders: 55
AT&T Inc. (NYSE:T) is an American telecommunications company that provides a wide variety of services such as call packages, broadband internet, handsets, and customer premises equipment. The company is headquartered in Dallas, Texas.
Berry Street Capital owned a $17.7 million stake in AT&T Inc. (NYSE:T) as part of its Q1 2022 holdings, which came in the form of 750,000 shares. The second quarter saw the firm remove this completely from its portfolio. Insider Monkey surveyed 895 hedge funds for their Q2 2022 investments and discovered that 55 had held a stake in the company.
AT&T Inc. (NYSE:T)’s share price has dropped by a painful 18% over the past twelve months, and the company isn’t seeing much love from Wall Street either. For instance, MoffettNathanson reduced its share price target to $17 from $19 in August 2022, stating that AT&T Inc. (NYSE:T)’s cash flows and dividends are being sacrificed for subscriber growth. AT&T Inc. (NYSE:T) currently pays a 28 cent dividend for a 6.6% yield.
AT&T Inc. (NYSE:T)’s largest investor in our database is D. E. Shaw’s D E Shaw which owns 11.4 million shares that are worth $239 million.
Argosy Investors mentioned the company in its Q2 2022 investor letter. Here is what the fund said:
“I purchased shares of AT&T Inc. (NYSE:T) prior to its spin-off of Warner Brothers Discovery (WBD). Most people are probably familiar with AT&T. They are a major cellular service provider, and until recently owner of the Time Warner media assets, which include HBO, CNN, TNT, TBS, Cartoon Network, DC Comics and the Batman content brands, and more. At the time of my purchase, I estimated that the combined T/WBD assets traded at a 15% levered FCF yield, or 6x FCF. I also believe that WBD, which now has HBO Max, has future growth in front of it which was previously in doubt when Discovery was primarily tied to the declining cable television bundle. Since then, Netflix reported disappointing subscriber growth, which threw all streaming companies into disarray. WBD followed that news with a disappointing outlook on its business during its own quarterly earnings.
As a result, shares of WBD have declined nearly 40% since the spin-off. WBD now trades for 7x 2023E FCF and there is great potential for returns over the next few years as WBD pays down debt used to finance its merger combining Warner Brothers and Discovery and grows. We do not own a large position in WBD at present, but we may add to it over time.”
1. Netflix, Inc. (NASDAQ:NFLX)
Berry Street Capital’s Stake Value In Q1 2022: $23 million
Percentage of Berry Street Capital’s 13F Portfolio In Q1 2022: 2.65%
Number of Hedge Fund Holders: 95
Netflix, Inc. (NASDAQ:NFLX) is an entertainment services provider that hosts an online platform allowing its users to access a wide variety of content such as movies, tv shows, and documentaries. The company is headquartered in Los Gatos, California, the United States.
Netflix, Inc. (NASDAQ:NFLX) is one of the worst performing stocks in the U.S. index, as its shares have bled a massive 59% in value over the course of this year. While it plans to increase advertising spending to boost growth, the fact that it lost a million subscribers in its fiscal Q2 did not help investor confidence. JP Morgan kept a $245 price target for the company in September 2022, stating that its plans for an advertisement supported subscription tier are slowly gaining investor interest.
Netflix, Inc. (NASDAQ:NFLX) was another stock that Berry Street Capital removed from its portfolio during the second quarter of this year. In the prior quarter, the fund had owned a $23 million stake in the company which represented 2.65% of its portfolio. Insider Monkey’s 895 hedge fund survey for this year’s June quarter saw 95 as having invested in Netflix, Inc. (NASDAQ:NFLX).
Netflix, Inc. (NASDAQ:NFLX)’s largest investor in our database is Ken Fisher’s Fisher Asset Management which owns 6.5 million shares that are worth $1 billion.
Pershing Square Holdings mentioned the company in its Q2 2022 investor letter, and it stated that:
“In April, we announced that we exited our position in Netflix, Inc. (NASDAQ:NFLX) following the company’s first quarter results as management commentary and a required shift in the company’s business model toward ad-supported streaming caused us to lose confidence in our ability to predict the company’s future prospects with a sufficient degree of certainty. While we have confidence in Netflix’s superb management team and their long-term record, we believed the dispersion of outcomes had widened such that it no longer met our requirements for a core holding. We discussed our decision to sell Netflix in detail in our April 20th letter to investors which you can read here.”
Disclosure: None. You can also take a look at 10 Best Long-Term Stocks to Buy Now and Analyst Are Cutting Estimates on These 10 Tech Stocks.
